The present invention relates to a housing clamp for a power tool housing, such as a drill, router, grinder, impact wrench, ratchet wrench, screwdriver, or other powered tool. The housing clamp includes a circumferential flange and recess that extends at an angle. When the housing clamp is installed, the housing clamp couples two portions of a power tool housing together. As the housing clamp is tightened onto the housing portions, the flange loads the housing with even pressure around its circumference providing a clamping load. The housing clamp provides even pressure around a large area at a working end of the tool, allowing the tool to be thinner in a dimensionally critical area.